Oxyzo began as a digital lending platform for OfBusiness in 2017 and after raising $200 million in Series A funding, the company’s net worth soared to $1 billion as it emerged from the shadows of OfBusiness.
Raising an enormous sum in a Series A round, Oxyzo certainly bagged the credit of being the first Indian startup led by a woman to raise such massive funds.
Being the chief arm of OfBusiness, it evolved to be a tech-enabled financial solution provider catering to the needs of small and mid-sized enterprises.
In 2022-23, India’s projected economic growth will be between 8 and 8.5 percent, and SMEs will undoubtedly play a key role in this story.
The most pressing issue for SMEs is consistent cash flow, and unicorn FinTech Oxyzo plays a critical role in rescuing SMEs from such a crisis in 2022. The company has disbursed more than $2 billion in cash flow-based financing to over 4,500 MSMEs.
About Oxyzo
Gurugram based OfBusiness is a major B2B platform that serves SMEs in the manufacturing and infrastructure sectors by procuring raw materials and assisting in bids.
Oxyzo Financial Services started as a 100% subsidiary of OfBusiness and is supported as a financial platform by it assisting SMEs with cash flow matching their working capital requirements for procurement of raw materials.
Although it was formerly a subsidiary of OfBusiness, it has since grown and developed a loyal following of its own. 70% of its customers are in sectors like logistics, warehousing, and D2C in the supply chain finance ecosystem, which is not within the periphery of OfBusiness.
Oxyzo’s AuM is now $350 million, a 2x increase in a year and a profitable venture since its inception.
About Founder
Serial entrepreneur and CEO Ruchi Kalra is an IIT Delhi alumna and also bagged her MBA from ISB. Ruchi Kalra was previously a partner at McKinsey & Co. and before co-founding OfBusiness along with her husband Ashish Mohapatra in 2015 she was a Senior Business Analyst at Evalueserve. She co-founded Oxyzo while she was nine months pregnant in 2017.
Growth Story
Since its inception, Oxyzo has been profitable and is currently at 5.5% + pre-tax ROA. It has witnessed 100% year-on-year growth and maintained a GNPA of 1.2% even during the pandemic.
In the past 6 months, it has launched fixed income and business security lines through which it has experienced exponential growth and soared its cumulative market volume to $1.6 billion.
The Factor that Sets Oxyzo Apart
The differentiating factor that had set Oxyzo apart was the nature of its lending. Lending to SMEs was a very short-term commitment, allowing customers to pay back as much as the money they had borrowed.
It takes between 90 and 120 days for the funds to be returned. The unique blend of lending and technology has enabled great monitoring, which has ensured lower credit risks, as low as 1.2% in terms of NPAs, thus enjoying the confidence of more than 50 lending partners.
Funding and Utilization of Capital
Oxyzo has set the bar a notch higher by being the first Indian startup to raise $200 million in a Series A round of funding led by Alpha Wave and co-led by Norwest Venture Partners, Matrix Partners, Tiger Global, and Creation Investments.
With the funds raised, Oxyzo has the vision to expand its supply chain marketplace, broaden its digital financial service platform, launch fixed income products for SMEs, and diversify into debt capital markets and securities, thus providing innovative digital financial products and solutions.
To Conclude
The 12th startup of 2022 while the 98th startup of India, Oxyzo has bagged the coveted title and crossed the threshold of Unicorn club.
With the rising digitalization and emergence of the digital economy, there will be a marked shift in the needs and services approach in the B2B segment, which the company is looking forward to capitalizing through its innovative digital products.
Oxyzo is expected to bring about a disruption in the digital financial services space with the evolution of the B2B landscape in India.
Read More : OfBusiness : B2B E-Commerce Platform that Become Unicorn Startup
